Dr M ‘Flip-Flopped’ & running with tail behind his hind legs on Najib’s initiative for the rakyat

Fourth Prime Minister Tun Dr Mahathir Mohamad ‘Flip-Flopped’ on his opposition against BR1M, an initiative introduced by Prime Minister Dato’ Sri Mohd. Najib Tun Razak as direct subsistence for the B40 five years ago, during the launch of Parti Pribumi Bersatu Malaysia tonight.

The Malay Mail Online:

Dr M says would abolish GST, make BR1M statutory

BY IDA LIM

Saturday January 14, 2017
11:05 PM GMT+8
SHAH ALAM, Jan 14 — The federal opposition will gradually repeal the controversial Goods and Services Tax (GST) if it is elected into power, Tun Dr Mahathir Mohamad said today.

Although previously calling the 1Malaysia People’s Aid (BR1M) “bribery”, the former prime minister and chairman of Parti Pribumi Malaysia also said a Pakatan Harapan government would convert the cash handouts into statutory aid.

“GST will be abolished gradually and replaced with a sales tax according to the people’s will,” he said in his speech at PPBM’s launch here, without elaborating further.

Even before he could finish his remark on the GST’s abolishment, the red-clad crowd erupted into loud cheers of “Hidup Tun!” (long live Tun) as soon as they heard the word “abolished”.

The cheers were more subdued, however, when he repeated his words and completed his remark.

Dr Mahathir also declared that PPBM along with other opposition parties would form a “clean” government—especially in terms of elections—with various reforms to be carried out.

He said this new government would ensure that no bribes would be given out in any form to voters to gain support during elections.

“If it is found that BR1M is important, then this money will be distributed by government servants. BR1M cannot be included in any party’s’ manifesto.

“If it is agreed by the people, BR1M will become a statutory aid that is determined by laws and ordinary budget. The prime minister cannot determine its distribution or the amount, or the way it is given,” he added.

– See more at: http://www.themalaymailonline.com/malaysia/article/dr-m-says-would-abolish-gst-make-br1m-statutory#sthash.6xlrxFzg.dpuf

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Bantuan Rakyat 1 Malaysia (BR1M) was first introduced in 2012 as subsistence direct to the target group, which is the B40, upon Federal Government’s rationalisation and reform on subsidies and economic transformation program. It was an idea mooted by Bank Negara, during the days of ‘laboratories’ created when Prime Minister Najib’s administration was preparing on new policies and economic and government transformation in 2010.

The program, now is categorised by different group of recepients.

Dr Mahathir attacked BR1M as a form of ‘bribe’ by Prime Minister Najib, to get the B40 supporting BN.

Inadvertently, Dr Mahathir acknowledged the transformation that has been introduced by Prime Minister Najib did brought positive effect for the rakyat. And now, he wants BR1M to be tweaked into statutory.

The fact is that he is running out of issues to rubbish Prime Minister Najib, considering many of the latter’s policies and strategic initiatives have brought positive result which the rakyat has been benefitting.

How his Opposition ‘Barisan Rakyat’ would try to mitigate the grave short fall in Federal Government coffer for operating budget by RM40 billion plus per annum by abolishing the consumption tax is not clear at this time. It is doubtful that it could be supplemented even if the Opposition whipped up IRB, Royal Customs and Local Authorities to generate RM40 billion plus that is collected annually under GST.

So far consumption tax in the form of GST is the fairest system of collecting revenue from the rakyat’s consumption of goods and services, without imposing higher personal income tax or any introduction of new taxes.

Globally, consumption tax has been proven to work in most economies, be it modern and developed or the struggling under-developed ones.

Published in: on January 14, 2017 at 23:59  Comments (9)  

The economy going bankrupt and failing state indicators

There are some really skewed personalities with sinister agenda going around trying to convince the gullibles and ill-informed in their strategy to oust the current Prime Minister Dato’ Sri Mohd. Najib Tun Razak, why bold lies like “The nation is going to be bankrupt” and ‘The economy is failing”. However, the reality is quite the opposite.

The Star story:

Thursday, 12 January 2017 | MYT 4:33 PM

Mercedes-Benz M’sia’s sales hit record in 2016

KUALA LUMPUR: Mercedes-Benz Malaysia (MBM) posted an all-time record sales of 11,779 units in 2016, up 9% from 10,845 units sold in the previous year.

MBM president and chief executive officer Dr Claus Weidner said Mercedes-Benz continued to be the number one premium car brand locally with a 2.4% market share and hoped to retain its pole position in 2017.

“2016 was an exceptional year in the history of MBM. We achieved a tremendous milestone as we contributed towards the global success of Mercedes-Benz, which set a new record with double-digit growth of 11.3% and over two million vehicles sold worldwide.

“We are working hard to sustain our success here in Malaysia,” he told a media briefing on the group’s 2016 performance in Kuala Lumpur on Thursday.

MBM’s record-breaking performance came as demand for Mercedes-Benz vehicles in the Asia-Pacific region achieved a new high, increasing by 19.3% compared to 2015 which totalled 734,109 vehicles delivered to customers.

Malaysia was listed as a contributor to this best in history growth along with other leading Asia Pacific countries, namely Japan (+3.5%), South Korea (+25%), Australia (+14.8%) and Taiwan (+17.4%).

Amid the challenging economy, Weidner said MBM’s strategy of prioritising customer service had paid off and kept its sales performance at a steady pace throughout 2016.

He said MBM’s production plant in Pekan, Pahang, produced 7,882 vehicles last year, recording a growth of 2.2% from the previous year.

He said the group also offered a comprehensive financing at 1.88% and has a loan portfolio of RM1.8bil currently, with four out of every 10 vehicles sold being financed and insured by its sister company, Mercedes-Benz Services Malaysia.

“MBM will continue to invest in dealer network, upgrade facilities and up skill its manpower in Malaysia,” he added.

Meanwhile, MBM vice president (sales and marketing) Mark Raine said the company hoped to register another stellar performance in 2017, banking on new model launches expected this year together with the 17 models launched last year.

On the impact of weak ringgit on car sales and pricing, he said MBM would continue to monitor all influencing factors, but as of now, it had no plans to increase the prices of its vehicles. – Bernama

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The record sales of the German automobile is a very good indicator the upper middle class have spare cash to splurge. That is up and above that their faith of the economy is strong and it is going concern, for their firms to continue operating with foreseeable profits and healthy cashflow to undertake such luxurious acquisitions.

Other services catered for the upper middle class such as fine and gourmet dining, 5star and above accommodations have started to strongly present their demands. This include private and leased jet and charter services.

Otherwise, they would have taken measures like conserving the utility of resources and safeguarding assets, especially cash and securing financial commitments.

How about the bulk lower middle class. This is the group which is said to be making the most noise, affected by the so called “Intolerable increasing cost of living” and coupled by the urban-lower middle middle income trap.

The liquidity amongst them is very supportive of the retail and local economy, which is reflective in the strengthening nation’s favourite family restaurant, which is seeking listing in Bursa Malaysia again.

The Star story:

Thursday, 5 January 2017 | MYT 5:01 PM

QSR Brands to open 30 more KFC outlets this year

KUALA LUMPUR: QSR Brands (M) Holdings Sdn Bhd (QSR Brands) is planning to expand its KFC business by adding up to 30 new outlets nationwide this year.

Chandrasagran Munusamy, general manager for KFC operations at QSR Brands unit QSR Stores Sdn Bhd, said the expansion would materialise with or without the relisting of KFC or QSR Brands on the local bourse this year as speculated.

He said funding for KFC’s expansion in Malaysia was not an issue and was not the main reason for the relisting.

“Thirty outlets were opened last year without any funding issue and to-date we have a franchisee of 665 KFC outlets nationwide.

“Malaysia has great potential and we want to open 20 to 30 more outlets this year in areas that we have identified,” he said after launching the new KFC Cheezy Mushroom Crunch in Kuala Lumpur on Thursday.

Chandrasagran said the cost of opening a new outlet would vary between RM1mil and RM4mil depending on whether it would be a drive-thru restaurant, a shoplot restaurant or one in a shopping complex.

It was reported recently that the fast-food franchise brand was returning to Bursa Malaysia after being taken private in 2013 by CVC Capital Partners, Employees Provident Fund and Johor Corp.

The relisting is expected take place this year with its initial public offering capable of raising up to RM2bil.

“The funds from relisting will cover many areas, not necessarily for the KFC expansion plan only. The management is working on it now, however, nothing much has been finalised,” Chandrasagran said, adding that he projected another incremental sales growth for KFC Malaysia this year.

QSR Brands, which currently holds a franchisee of over 750 KFC restaurants in Malaysia, Singapore, Brunei and Cambodia, is also the operator of Pizza Hut in Malaysia (370 outlets) and Singapore (75 outlets).

Meanwhile, senior general manager for KFC marketing Angelina Villanueva said despite the bleak economic outlook, the food and beverage industry was very competitive nowadays.

“The demand for KFC in the country is intact and KFC Malaysia is doing well in terms of sales.

“For the new KFC Cheezy Mushroom Crunch product, we are looking at 15% contribution to the overall revenue. We hope 2017 will be another good year,” she said. – Bernama

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The fact is that for QSR to maintain 750 outlets all over the region and still making money (bulk of the outlets are in Malaysia), it is reflective of  the market’s liquidity and propensity to spend.

The liquidity amongst the upper lover 40% and lower middle class is also reflective the strong support for of a local kopitiam chain seeking IPO.

The Malay Mail Online:

Malaysian restaurant chain PappaRich said to mull Singapore IPO

Thursday January 12, 2017
04:59 PM GMT+8
KUALA LUMPUR, Jan 12 — PappaRich Malaysia Sdn., a food chain selling local cuisine from nasi lemak to curry laksa noodles, is considering a Singapore initial public offering, people with knowledge of the matter said.

The company, which opened its first restaurant in Malaysia in 2006, is targeting to achieve a valuation of at least S$200 million (RM892 million) in the share sale, according to the people. It aims to conduct the offering as soon as this year, one of the people said.

Any deal would add to a rebound in the Singapore IPO market last year, when fundraising surged more than fourfold to US$1.7 billion (RM7.58 billion), data compiled by Bloomberg show. PappaRich would follow other Southeast Asia-based restaurant chains including ABR Holdings Ltd., which operates Swensen’s ice cream parlors, and Oldtown Bhd in gaining a listing to fund expansion.

A representative for PappaRich, which is based near Kuala Lumpur, said a listing has always been a consideration as the company considers fundraising options to support its expansion plans. PappaRich “would certainly” expect to have a valuation in excess of S$200 million upon listing, based on comparable businesses, he said.

Oldtown, which makes instant coffee and runs cafes, has risen 18 per cent in Kuala Lumpur trading over the past 12 months. Shares of Thai dessert chain After You Pcl, which raised US$21 million in a Bangkok IPO last month, have surged 167 per cent from their offer price.

More than 1 million customers dine at the PappaRich outlets monthly, according to its website. The company has about 100 outlets globally including locations in Malaysia, Singapore, China, Australia, New Zealand and the US, the website shows. — Bloomberg

– See more at: http://www.themalaymailonline.com/money/article/malaysian-restaurant-chain-papparich-said-to-mull-singapore-ipo#sthash.ImuUYOr8.dpuf

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More on the strategic front, initiatives are being made and strengthening the position of Malaysia two become another global shariah compliant fund hub.

Thursday, 12 January 2017 | MYT 1:33 PM

Malaysia launches 5-year Islamic fund, wealth management blueprint

KUALA LUMPUR: Malaysia has launched a five-year Islamic Fund and Wealth Management Blueprint to further strengthen the country’s position as a global hub for Islamic funds by 2021.

The plan, the first of its kind globally, is also aimed at developing the country as an international provider of Islamic wealth management services.

It was launched by Second Finance Minister Datuk Johari Abdul Ghani at the International Fund Forum 2017 in Kuala Lumpur on Thursday.

The 51-page blueprint comprises three strategic thrusts, namely, strengthen Malaysia’s position as a global hub for Islamic funds, establish the country as a regional centre for shariah-compliant sustainable and responsible investment, and develop it as an international provider of Islamic wealth management services.

“The Islamic wealth management industry is still at a nascent stage of development as compared with other segments of the Islamic capital market.

“Malaysia, with its comprehensive Islamic finance ecosystem and track record in innovation, is at an advantageous position to play a lead role in shaping the concept and driving the development of Islamic wealth management services,” the blueprint highlighted.

It also outlined 11 recommendations for Malaysia to achieve the desired status by 2021, and which focus on addressing impediments to growth and innovation, while identifying potential opportunities for collaboration and partnerships, as well as accelerating the process of building scale.

The recommendations, among others, provide enabling frameworks to support innovation in Islamic markets, enhance market access and international connectivity, promote the growth of private equity, as well as spur institutional participation in Islamic funds.

It also includes facilitating new digital business models, products and services for Islamic fund and wealth management, develop facilitative market infrastructure for Islamic wealth management, and fortify talent pipeline for Islamic wealth management.

As Malaysia operationalises the blueprint, utmost attention would be given to the phased implementation of initiatives under the respective recommendations.

It is recognised that there might be further shifts that would influence the dynamics of the global and domestic marketplace, including the emergence of new factors.

Therefore, the recommendations are designed to provide sufficient flexibility within the overall objective of the blueprint to enable appropriate adjustments and realignment in such situations. – Bernama

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It is ashamed there are professionals and the educated lot amongst us who are taken in with these proposterous notion that the nation is heading towards bankruptcy out of sheer lame political rhetorics, simply to demonstrate their political agenda is out of steam but still continue hitting multiple layer of brickwalls.

At the strategic level, limited layers dwell into markets in Malaysia as an open economy and its open for business. Business activities comes with sorts of commercial papers being traded and exchanged fr assets against debts, where shareholders plan their portfolio based on trends and strength of specific sector.

Published in: on January 12, 2017 at 20:15  Comments (1)  

Lesson from Trumphiancy: Charity begins at home

Despite short of overwhelming popular votes in recently concluded presidential elections to vote the 45th president of the most prolific democracy and champion of the ‘New World Order’, Middle America boldly told the political establishment off that they wanted attention and their requirements be served up above other interests and agenda of for the rest of the world, including position and values of the minorities within ‘Home of the Free’ and ‘Land of the Brave’.

The Straits Times story:

US elections: Malaysian PM Najib says Donald Trump appealed to Americans who want less foreign interference

 Malaysian Prime Minister Najib Razak has congratulated US President-elect Donald Trump on his election win.

 

PUBLISHEDNOV 9, 2016, 4:24 PM SGT

KUALA LUMPUR (REUTERS) – Malaysian Prime Minister Najib Razak congratulated United States President-elect Donald Trump on Wednesday (Nov 9), saying the Republican victor had appealed to Americans who wanted to see the United States less embroiled in intervention abroad.
“His appeal to Americans who have been left behind – those who want to see their government more focused on their interests and welfare, and less embroiled in foreign interventions that proved to be against US interests – have won Mr Trump the White House,” Datuk Seri Najib said in a statement.
Mr Najib said he looked forward to continuing a partnership with the United States under Mr Trump’s presidency.

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This is true because US foreign policy the past eight years of Obama administration, spent too much on international issues which include the change of several regimes mainly in the North African and West Asian region, more commonly known as ‘Arab Spring’.

United States supported resistance and separatists in countries like Syria, Kurdish, Yemen, Ukraine.

The Obama administration earlier intended to reduce and withdraw armed troops in Afghanistan but instead committed more resources. So was the promise to shut Guantanamo Bay and resolve the hundreds of multinational detainees being jailed without trial.

Right almost ending his first term, President Obama launched a special forces military incursion attack from Afghanistan and assassinated the world most wanted terrorist Osama Ben Laden.

When Hillary Clinton was the Secretary of State and she was in Malaysia fir official visit, she made a point about allowing then Opposition Leader Anwar Ibrahim some room to discourse, despite the latter was then still in a serious criminal case which still in trial.

During President Barack H Obama’s official visit to Malaysia, part of his itinerary is to have an audience with Opposition Leaders and civil liberty activists. That should not be viewed as anythimg but dipping America’s Super Power hand into domestic affairs, especially when the case brought forth was criminal and anti-Constutional in nature.

Closer to home front, Prime Minister Dato’ Sri Mohd. Najib Tun Razak opined that the outgoing administration was not too comprehensive in their outlook for the majority of Americans, thus after eight years of Democrat control via Obama administration, they had enough.

The Straits Times story:

US elections: Malaysia’s Najib says Trump appeals to those left behind

Malaysian Prime Minister Najib Razak said that Donald Trump won the White House because of his “appeal to Americans who have been left behind”.PHOTO: EPA
PUBLISHEDNOV 9, 2016, 8:46 PM SGT

Trinna LeongMalaysia Correspondent
Malaysian Prime Minister Najib Razak has lauded Mr Donald Trump’s victory today, saying what happened showed that “politicians should never take voters for granted”.

“His appeal to Americans who have been left behind – those who want to see their government more focused on their interests and welfare, and less embroiled in foreign interventions that proved to be against US interests – have won Mr Trump the White House”, Datuk Seri Najib said in a statement.

His comments on focusing on the interest and welfare of those “left behind” echoed what he said at the unveiling of Malaysia’s 2017 Budget when he handed out a slew of cash, grants and aid to what he called the country’s B40 group – the bottom 40 per cent of Malaysians.

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Let the mighty United States have a reflection on themselves first upon the change of guard coming up 20 January 2017. The Brit gad theirs right after World War Two ended and they quickly decided maintaining control and cloud of the British Empire, which simply translate to 1/3 of the planet is something they cannot afford to do any longer.

So what ever resources left available to Trump come January, should be channeled for the social and economic development strategy and agenda of the Middle America first.

Published in: on November 11, 2016 at 00:15  Leave a Comment  

Preserving the Brand

The decision makers of the Malaysia GP namely Ministry of Finance, Sepang International Circuit and Youth and Sports Ministry (KBS) should consider the preservation of the Brand, particularly the world FIA champion unchalleged for several seasons Mercedes AMG Petronas F1 Team which is synonymous with SIC as its home.

NST story:

Khairy: Malaysia should ‘take a break’ from hosting F1 race

BY NST ONLINE – 24 OCTOBER 2016 @ 8:53 PM

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KUALA LUMPUR: Youth and Sports Minister Khairy Jamaluddin today expressed his support for a temporary halt to Malaysia hosting the Formula 1 races.

Addressing the matter via his Twitter handle @Khairykj, the minister said there were many compelling factors to support the idea, including high costs and limited returns. He said that when Malaysia first began hosting the F1 races in 1999, it was the first Asian country outside of Japan to do so.

“Now, there are so many venues. There is no first-mover advantage; it’s no longer a novelty,” he said. Khairy cited reasons such as declining ticket sales and TV viewership figures, as well as foreign visitors now having the option of seeing the races in Singapore, China and the Middle East.

His comments came in the wake of the revelation by Sepang International Circuit (SIC) chief executive officer Datuk Ahmad Razlan Ahmad Razali today, who said SIC is mulling the future of the race in Malaysia. Razlan had said that a special meeting would be held this week with SIC’s major stakeholder, the Finance Ministry, with regards to the future of the sporting event in Malaysia.

He said consistently declining F1 ticket sales and TV viewership figures were among the factors behind the move.

Meanwhile, Khairy engaged Twitter users on the subject, and fielded questions. He said SIC should bid for less costly races, like the Japan GT, in response to a query on what can be done to avoid turning the Sepang circuit into a ‘white elephant.’

On a question as to why the Singapore Grand Prix had in contrast enjoyed success, Khairy said the Singapore leg benefited from its novelty factor. “It’s a night race in the city (which is done) no where else in the world. Even then, (their) ticket sales are down,” he said.

Khairy maintained that Malaysia should continue to host the MotoGP, which has maintained a sellout crowd. The Moto 2 and Moto 3 races, he said, also has the added boost of having Malaysian riders.

The minister said SIC could instead also spend more on development and increase public access to track days. “Local racers such as Jazeman Jaafar, Nabil Jeffri and Akash Nandy are having a tough time getting sponsors.

A fraction of the F1 hosting fee can help them and more,” he said. Jazeman is a driver with HTP Motorsports in the Blancpain GT Series and the Intercontinental GT Challenge. Nabil Jeffri races for Arden Motorsport in GP2.

Read More : http://www.nst.com.my/news/2016/10/183085/khairy-malaysia-should-take-break-hosting-f1-race

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The comment from the concession holder and local operator of Malaysia GP argues that since Mercedes AMG Pertonas has been ‘monopolising’ the entire season of the FIA F1 circuit globally for a few season as overall champions, it has digressed on exciting for fans and TV viewers world wide.

Event in Malaysia, ticket sales have been dwindling down through the years. Also tv viewership.

In Singapore, where the city-state is offering the only night race in the 20 race circuit worldwide, is suffering the same symptoms.

It is unwise to sacrifice commercial takings at the expense pf branding when Petronas is synonymous with the Mercedes AMG Petronas team and SIC is their home turf.

It is like Italian GP at Monza, home of the Scuderia Ferrari F! team where the team is synonymous with Santander and Shell are two title partner sponsors.

Malaysia, through KBS, should find ways to strategically capitalise and optimise on the branding on Mercedes AMG Petronas F1 team and SIC, for the nation.

screen-shot-2016-10-25-at-4-18-09-am

Maybe other global renown brands like Mutiara Crowne Hotel, Danna or even Pelangi, national carrier Malaysia Airlines and globally renown banking group Maybank, to come together and lend the strength of joint-co-branding for generating a new hype of interests amongst the motor sports enthusiasts, high net worth individuals and targeted corporations to commit into the Malaysia GP for the net three years.

The ability to continuously hype the attention on Malaysia as a high technology motorsports itinerary would also be beneficial if and when Lotus is ready to introduce their products, easier planned by 2018-2020. This will complement the industry.

Branding is a powerful tool. Minister Khairy Jamaluddin should be able to distinguish the merits of brands that are already riding high on the top without a real challenger, which should be optimise to the fullest all his strategic programs of ‘Fit Malaysia – the high-octane segment and capitalise on it.

After all, for Malaysia GP Tan Sri Mokhzani Mahathir considered of installing lighting facility all over at the GP track for the Malaysia GP could be race at night, it a proper built motorcading circuiting,

Giving it up  now where the figures are dwindling isn’t enthusiastic ways of marking up an mark, on a turf to be repackaged into greater heights, mainly on the consideration of lowered ticket sales.

Published in: on October 25, 2016 at 00:30  Leave a Comment  

Going concern economy

Malaysia is open for business and the facts are scientific evidence that the nation’s economy is healthy and regardless what detractors tried to manipulate and lie about it. Hence, it is going concern.

We would like to share a comment that one of our regulars here in this blog pertaining to Fourth Prime Minister Tun Dr. Mahathir Mohamad of “Failed economy”, shared in the last posting.

PM Najib’s performance in managing the economy in the first seven years of premiership is rather impressive, even taking Dr Mahathir’s first seven years’ performance.
It is a fact that Najib’s transformation policies did bring about steady reduction of annual budget deficit.
Comparatively to Dr Mahathir’s time his first budget saw a 16.3% deficit. six years later was brought down to -7.5%.
When he first started, the Malaysian Govt debt is 54% of GDP. Within six years, it shot up to 103.4% of GDP. 62% of that public debt was in foreign currency.
That simply translate Dr Mahathir borrowed 64% of GDP from foreigners.
Foreign reserves than was only at USD6billion. There was a minus current account. Then again, in Dr Mahathir’s first year as PM, the current account was at -13.4%.
How could the economy today is a “Failed state”?
There are more people working. The BOP in the current account is good. The unemployment rate is a little over 3%. It simply means those who are unemployed is by choice.

Income per capita is all time high.
Even market capitalisation of Bursa Malaysia is RM1.8 trillion. The foreign reserve is a healthy near USD100b.

The Malaysian economy is on-going concern. It’s evidently clear.

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Malaysia was never a ‘Failed Economy’ then despite the ghastly figures. The fact is that, Malaysia is a going concern state.

The global rating agencies in the likes of Fitch, Moody’s and Standard and Poor issue very encouraging rating scores for the Malaysian economy.

It is organic. It is industrious. The people are productive and there  raw materials to work on and goods to produce.

Thus, the industrialisation grew and more and more exports are generated year on year. When economic activity grew, the support system also would naturally grew.

This include banking and other services, like food and beverage and other ancillary services.

Economic activity also promotes more demand for transportation, energy and above all, infrastructure.

Naturally as the population grow, the demand for dwellings increase as well. The trickle effect is endless.

If comparable against present day, the economic vital statistics is even much better. There fundamentals are strong and the economic base is very solid.

Therefore, the confidence on the principle of ‘going concern’ should be higher.

However, there are some rogue personalities who are trying to frighten the majority with the ghost stories about the economy is sick and the nation slow is failing.

To the majority, they are unable to decipher even basic economic data. Along with rising cost of living, they are easily bought over.

The fact, many ordinary people are not putting the measurement ruler to the right pole. They simply simplify everything with a common viewing glass.

With the exception of unaffordable homes in the major metropolitan, everything else should be in the right context of affordability.

A quick example is a car. The same car with equivalent specifications today is actually cheaper than what it was ten years ago. If adjusted to the purchase power parity, then the affordability of a common car is accessible to all.

This is true considering that more and more cars are being sold and even to group of consumers previously, are unable to have access to such goods at their current state.

More and more Malaysians are travelling and taking holidays, regionally and even further abroad.

Published in: on October 21, 2016 at 10:00  Comments (2)  

Sound Fiscal Management

Malaysian Federal Government had been having sound fiscal management since Merdeka, considering that economic growth had been steadily achieved which is reflective in the rakyat socio economic stature and quality of life, without the need to issuing USD17.5 billion in a single tranche of sovereign bond to raise money.

Financial Times story:

First Saudi bond sale raises $17.5bn in emerging market record

Debt issue part of a broader plan to shift economy away from its reliance on oil
Read next:
Saudi Arabia to sell up to $17.5bn in debut issue
YESTERDAY

© Bloomberg

YESTERDAY by: Elaine Moore in London and Simeon Kerr in Dubai
Saudi Arabia has raised $17.5bn for its debut sovereign bond issue, eclipsing Argentina’s bond sale earlier this year to become the largest debt issue by an emerging economy.
Investors put up orders of $67bn, enabling the kingdom to increase the amount borrowed and overtake the $16.5bn raised by Argentina as buyers queued up in search of yield.

“This is clearly a success for the country,” said Richard House, head of emerging markets fixed income at Standard Life Investments.

Saudi Arabia’s entrance into international markets is part of a broader plan to pivot the country’s economy away from its reliance on oil, as prices slump to half the level of two years ago. The sale is expected to herald a pipeline of new deals, including the world’s biggest initial public offering from state oil company Aramco.

“This is very significant moment for the kingdom — until this year it had not held external sovereign debt,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “They had to issue, given tight domestic liquidity conditions and stretched local funding sources, and we expect to see further issuance going forward — Saudi will become a fixture on global debt markets.”

The multibillion-dollar order book reflected heightened demand for debt issued by emerging markets this year, as interest rates in the developed world remain at historic lows. Argentina, Qatar, Turkey and Mexico have all sold large bond issues and the demand allowed Saudi Arabia to tighten prices. The sale comprised three maturities of five, 10 and 30 years offered at yields of about 2.60 per cent, 3.41 per cent and 4.63 per cent, respectively — slightly below expectations.

“Saudi is an attractive investment, but to be honest nearly every emerging market bond has been a success this year — investors are still desperate for yield,” said Mr House.

According to one investor, Asian buyers were responsible for a significant portion of orders, with investors such as pension funds and insurance companies known to be interested in buying the country’s long-dated bonds.

One investor said the issue was priced at a reasonable level, and would encourage interest in future expected bonds. “Saudi is just one big oil company, right, so there will be managers switching out some of their exposure to get the yield of the Saudi bond,” he said.

The bonds were sold around 40 basis points above debt issued by neighbouring Qatar, which carries a higher credit rating, and around 100 basis point wider than bonds sold by oil companies BP and Shell.

Saudi Arabia would have to embrace a new era of greater transparency as investors pore over its fiscal position and reform programme, he added.

“Bondholders will want to see that Saudi Arabia is continuing its fiscal consolidation — they won’t only want to see debt levels going up,” said Ms Malik.

Saudi Arabia’s economy is forecast to slow this year as oil prices remain low and the country engages in a costly war in Yemen, with the International Monetary Fund forecasting gross domestic product growth of 1.2 per cent this year from 3.5 per cent in 2015.

Related article

IMF cuts Saudi Arabia 2016 growth forecast as oil price stays low
Overall expansion of 1.2% lowest since 2009 as spending cuts hit non-oil sector
The IMF has welcomed the government’s Vision 2030 plan, which seeks to crimp spending, raise new non-oil revenue streams and bolster the private sector.

“This issue is important as Saudi Arabia will be in the market for a number of years, so they need to lay out a predictable plan of where they are going,” said Masood Ahmed, the IMF’s managing director for the Middle East, said in Dubai on Wednesday.

“And they need a credible fiscal consolidation plan — they need to show that they have a plan to bring down their financing needs.

In its pitch to prospective bond investors, Saudi Arabia’s Ministry of Finance acknowledged the damage caused to its economy by falling oil prices, which led the government to resume issuing local currency-denominated bonds last year for the first time in almost a decade.

The kingdom faces a budget deficit of 13 per cent of gross domestic product this year, below last year’s 16 per cent deficit, as spending cuts move from capital projects to public sector wage bill. Next year, the deficit is forecast to fall to 9.5 per cent.

Government debt, now at 5 per cent of GDP, is forecast to reach 20 per cent by 2017 as the state relies on borrowing rather than financial reserves to plug the shortfall.

Although oil prices have recovered from the decade-low of less than $30, they have struggled to sustain a rise above $50 per barrel.

Speaking at the Oil & Money energy conference in London on Wednesday, Saudi Arabia’s energy minister Khalid al Falih said the oil market had come to the end of a downturn, and that the time was now right to tighten supplies and raise prices.

Citi, HSBC and JPMorgan led the sale of debt on Wednesday, with Bank of China, BNP Paribas, Deutsche Bank, Goldman Sachs, Morgan Stanley, Mitsubishi UFJ, and NCB Capital also involved in the issue.

****************

The expected 1.2% growth of the Saudi economy for the year is attributable for the kingdom heavy reliance on the oil and gas industry and the sluggish global market for almost two years has taken a toll even for Saudi.

The expected budget deficit of 13% of Saudi GDP for the year (compared to 16% for the last year) is rather alarming.

The Malaysian Federal Government 2016 budget deficit is 3.1% of GDP. When Prime Minister Dato’ Sri Mohd. Najib Tun Razak took over the reins of the nation in the midst of the global financial crisis pertaining to subprime financial scandal in the West, the Bajet 2010 Federal Government deficit against GDP is 5..2%.

By comparison, the Malaysian Federal Government external borrowings is RM210 billion. That was accumulated through time, with many socio-economic development programs and projects have been successfully managed to be generated from these borrowings.

Of that, RM199.5 billion is in bond.

This is the Bernama online summary on what to expect from this Friday, when Bajet 2017 is tabled in Dewan Rakyat.

Bajet 2017 Akan Mencergaskan Ekonomi Malaysia

Beberapa tingkat di bangunan Kementerian Kewangan masih bercahaya berikutan pasukan bajet dan warga kerja bertungkus lumus bekerja lebih masa bagi menyiapkan laporan Bajet 2017 yang akan dibentangkan Perdana Menteri selaku Menteri Kewangan, Datuk Seri Najib Tun Razak di Parlimen Jumaat ini

Oleh Christine Lim

KUALA LUMPUR, (Bernama) — Bajet 2017 akan terus mencergaskan ekonomi Malaysia, walaupun dilihat sebagai yang paling mencabar bagi Perdana Menteri Datuk Seri Najib Tun Razak.

Ini sejajar dengan kedudukan ekonomi Malaysia yang terdedah kepada ketidaktentuan ekonomi dunia, dengan pertumbuhan empat peratus pada suku kedua tahun ini, merupakan tahap pengembangan paling perlahan sejak suku ketiga 2009 ketika kemuncak krisis kewangan global.

Najib membayangkan kerajaan perlu kreatif dalam menangani kekangan untuk terus menyokong kebajikan rakyat dan menyediakan seberapa banyak bantuan, dalam Bajet 2017.

Oleh itu, kebimbangan rakyat akan ditangani dengan sewajarnya.

KEWANGAN KERAJAAN

Kerajaan perlu mengurus kewangan secara berhemat, dari segi hutang dan defisit fiskal, ekoran unjuran pembayaran dividen yang lebih rendah oleh Petroliam Nasional Bhd dan kutipan cukai yang lebih rendah tahun depan.

Kerajaan juga komited mengurangkan defisit bajet kepada 3.1 peratus daripada Keluaran Dalam Negara Kasar (KDNK) tahun ini, seperti yang dibentangkan dalam pengubahsuaian bajet oleh Najib pada Januari semasa harga minyak mentah sekitar US$30 setong.

Pada harga minyak sekitar US$51 setong sekarang, ia memberikan kerajaan lebih kapasiti bagi meningkatkan perbelanjaan bajet, namun perlu berhemat memandangkan kedudukan kewangan masih dalam kedudukan sukar disebabkan ekonomi yang perlahan.

MIDF Research dalam laporannya yakin sasaran defisit 3.1 peratus itu boleh dicapai menerusi pelbagai langkah yang dilaksanakan setakat ini bagi menurunkan perbelanjaan dan melaksanakan projek pembangunan berasaskan keutamaan.

Risikonya ialah perdagangan dunia dan ekonomi terus lemah yang menjadi halangan utama kepada ekonomi Malaysia.

PERTUMBUHAN EKONOMI

Berikutan ekonomi dunia yang terus lemah, wujud tekanan dari segi import dan akaun semasa yang akan terus menjejaskan ekonomi dan usaha kerajaan Malaysia untuk meneruskan perbelanjaan pembangunan.

Ekonomi Malaysia dijangkakan tumbuh 4.0-4.5 peratus tahun ini berbanding 5.0 peratus tahun lepas, selari dengan cabaran global, antara lain, angka perdagangan dan ekonomi China yang perlahan, pasaran pekerjaan AS yang lemah, kedudukan ekonomi di zon Euro yang rapuh serta impak pengundian UK untuk meninggalkan blok berkenaan.

Kadar faedah AS yang dijangkakan meningkat juga akan meningkatkan risiko pengalian keluar modal.

HSBC Global Research dalam laporan mengenai ekonomi Asia menyatakan bahawa risiko pengaliran keluar modal juga menjadi semakin ketara disebabkan lebihan akaun semasa semakin menyusut berbanding jangkaaan setakat tahun ini.

Berdasarkan kekangan fiskal, bajet yang dibentangkan pada 21 Okt ini antara lain dijangkakan mengandungi langkah terhad yang sama untuk golongan berpendapatan rendah dan sederhana seperti Bajet 2016.

PERUNTUKAN PERBELANJAAN

Bagaimanapun, persekitaran ekonomi global yang masih rapuh akan memaksa kerajaan meningkatkan peruntukan bagi merangsang permintaan domestik dan perbelanjaan pengguna.

Profesor Ekonomi Fakulti Perniagaan Universiti Sunway, Dr Yeah Kim Leng berkata, kekangan fiskal akan menyaksikan keperluan untuk memberi keutamaan perbelanjaan ke atas bidang teras yang penting yang akan menjamin keselamatan sosial serta menjana pertumbuhan perniagaan dan pekerjaan.

“Dengan had ke atas perbelanjaan, terdapat keperluan untuk menangguhkan projek yang tidak memberi kesan segera ke atas ekonomi,” kata Yeah dalam temu bual dengan Bernama.

Bagi memaksimumkan kesan ke atas perbelanjaan, beliau juga mencadangkan kerajaan melaksanakan projek perkongsian awam-swasta.

Yeah menyokong pelepasan cukai atau pemotongan cukai untuk pertengahan 40 peratus isi rumah atau kumpulan M40 bagi menangani peningkatan kos sara hidup.

Peruntukan untuk perumahan, pendidikan, penjagaan kesihatan dan latihan, katanya, adalah amat penting bagi menyokong isi rumah di bawah 40 peratus atau kumpulan B40 itu.

Kategori M40 terdiri daripada mereka yang berpendapatan antara RM3,860 dan RM8,319 sebulan manakal kategori B40 yang berpendapatan dari RM3,855 dan ke bawah.

Bagaimanapun, jangkaan pertumbuhan ekonomi empat hingga 4.5 peratus tahun ini akan terus memberikan peningkatan sederhana kira-kira tiga hingga empat peratus dalam pendapatan kerajaan, kata Yeah dengan menambah, pendapatan tahun depan akan disokong oleh prospek cerah dalam ekonomi global.

Beliau melihat keperluan untuk menawarkan pelbagai insentif bagi merangsang pertumbuhan ekonomi dan mengekalkan keyakian pelabur, di samping menegaskan yang rancangan mengumpul dana melalui lelongan spektrum telekomunikasi juga akan meningkatkan tabungan negara.

FOKUS TERHADAP PKS

Sementara itu, Ketua Pegawai Operasi Perisian Senarai Gaji Dalam Talian PayrollPanda.my, Toine Vaessen berharap bajet akan datang akan memberi tumpuan kepada membantu perusahaan kecil dan sederhana (PKS), berikutan sumbangannya yang semakin meningkat bagi merangsang ekonomi.

“PKS adalah nadi ekonomi, menggunakan lebih 65 peratus daripada keseluruhan tenaga kerja di Malaysia dan menyumbang 36.3 peratus daripada keseluruhan KDNK,” kata Vaessen kepada Bernama.

Dalam satu kajian yang dijalankan PayrollPanda.my baru-baru ini mengenai keadaan ekonomi Malaysia, beliau berkata, ramai pembuat keputusan PKS merasakan ekonomi digital akan menawarkan banyak peluang untuk PKS.

Oleh itu mereka ingin melihat bajet akan datang memberi tumpuan untuk membantu PKS dengan transformasi digital ini dari segi infrastruktur, pelaburan, latihan, insentif cukai serta pelbagai inisiatif kerajaan yang lain.

Beliau berkata, walaupun ekonomi ketika ini lembap, PKS tetap positif mengenai prospek jangka panjang Malaysia.

“Ini menunjukkan pemilik PKS percaya kita sedang melalui tempoh yang sukar sebelum ekonomi kembali pulih,” katanya.

“Asas untuk ekonomi Malaysia yang kukuh, iaitu kestabilan, kepelbagaian dan ketahanan masih wujud. Pertumbuhan KDNK kini serendahempat peratus dan pembuat keputusan PKS menjangka kita akan kembali mencatat enam peratus dalam beberapa tahun akan datang,” tambahnya.

JANGKAAN BAJET

Bajet 2017 juga dijangka merancakkan lagi momentum perkembangan tahunan bagi mencapai matlamat penggal pertengahan yang ditetapkan Rancangan Malaysia Ke-11 (RMK11).

Ia juga dijangka menyasarkan kumpulan B40 dan M40 dan kerajaan dilihat akan meneruskan usaha membantu kebajikan kumpulan berkenaan menerusi pemberian Bantuan Rakyat 1 Malaysia (BR1M) serta menangani kebimbangan mengenai perumahan mampu milik.

RHB Research dalam nota penyelidikannya, menjangkakan peningkatan peruntukan BR1M akan ditambah bagi merangsang perbelanjaan pengguna.

Firma penyelidikan itu juga percaya kerajaan akan mengumumkan perbelanjaan bajet lebih tinggi bagi 2017 berbanding pada tahun lepas.

Bagi menggalakkan usaha pemilikan rumah, kerajaan berkemungkinan bertindak melonggarkan kaedah penilaian pinjaman, meningkatkan pengeluaran caruman Akaun 2 Kumpulan Wang Simpanan Pekerja (KWSP) serta memperkenalkan lebih banyak skim Perumahan Rakyat 1Malaysia.

KEBIMBANGAN RAKYAT

Antara kebimbangan disuarakan menyentuh aspek gaji lebih rendah serta pengurangan peruntukan bagi pendidikan pada tahun lepas.

Menurut Institut Penyelidikan Khazanah (KRI), gaji rendah serta pengangguran belia sememangnya membimbangkan selain peningkatan mendadak harga makanan berbanding inflasi secara menyeluruh.

Malah, berdasarkan laporan Keadaan Isi rumah II KRI membabitkan pembangunan kesejahteraan isi rumah bagi tempoh antara 2012 dan 2014, pertumbuhan pendapatan isi rumah Malaysia tidak dipacu oleh pertumbuhan gaji dan pendapatan.

Bagi tempoh 2012 hingga 2014, purata pendapatan isi rumah meningkat kepada Kadar Pertumbuhan Tahunan Terkumpul (CAGR) masing-masing sebanyak 10.8 peratus dan 12.4 peratus, namun kadar pertumbuhan nominal gaji dan pendapatan terbukti lebih perlahan pada 3.3 peratus.

Berdasarkan statistik baru-baru ini, median gaji di Malaysia pada 2015 adalah RM1,600 sebulan.

Ia turut membangkitkan aspek kewangan isi rumah yang terus berdepan tekanan dengan nisbah hutang isi rumah daripada KDNK adalah 89.1 peratus pada 2015 yang mana sebahagian besar beban hutang itu membabitkan pembiayaan bagi pembelian rumah.

Laporan KRI itu turut menunjukkan pekerjaan yang berteraskan kemahiran menawarkan gaji lebih tinggi, namun banyak syarikat Malaysia sebaliknya mengakui berdepan kesukaran mendapatkan modal insan yang memiliki kepakaran sedemikian.

BAJET MENJADI PEMACU DALAM AGENDA EKONOMI MALAYSIA

Bank Dunia telah menyatakan keperluan untuk pembaharuan struktur dalam Malaysia ekonomi terutamanya dalam modal insan, liberalisasi dan daya saing selaras dengan aspirasi negara untuk bergerak ke arah sebuah negara berpendapatan tinggi.

Oleh itu, Malaysia tidak boleh berpuas hati dengan kejayaan dan melihat kebimbangan yang dibangkitkan berikutan laporan Forum Ekonomi Dunia 2016-2017 baru-baru ini, yang menunjukkan penurunan ranking daya saing global Malaysia pada kedudukan ke-25 daripada 18 pada tahun lepas.

Masih terdapat keperluan untuk melihat bidang yang memerlukan perhatian lanjut dan penambahbaikan bagi meningkatkan keyakinan dalam kalangan pelabur termasuk kepentingan amalan tadbir urus untuk menghalang sebarang kemungkinan ketirisan dalam kewangan dan bajet kerajaan.

Dalam Bajet 2016, peruntukan berjumlah RM267.2 bilion, dengan RM215.2 bilion adalah untuk perbelanjaan mengurus, RM50 bilion untuk perbelanjaan pembangunan dan baki RM2 bilion untuk simpanan luar jangka.

Sementara itu, bajet yang ubah suai, telah menggariskan 11 langkah penyusunan semula untuk memastikan ekonomi dan kewangan kekal pada trajektori yang tepat.

Mengenai perbelanjaan pembangunan, tumpuan akan diberikan kepada projek-projek dan program dengan kesan pengganda yang tinggi, kandungan import yang rendah dan fokus terhadap kesejahteraan rakyat.

Projek-projek yang akan diberi keutamaan termasuk pembinaan rumah mampu milik, hospital, sekolah, jalan raya dan pengangkutan awam serta keselamatan manakala projek lain dalam kajian akan dijadualkan semula.

Langkah ini dijangka dapat mengurangkan komitmen tunai sehingga RM5 bilion.

RHB Research menganggarkan peruntukan sebanyak RM45 bilion dalam perbelanjaan pembangunan kasar bagi 2017, lebih rendah daripada unjuran RMK11 tetapi masih jauh lebih tinggi daripada anggaran sebanyak RM40 bilion pada 2016.

“Peningkatan dalam perbelanjaan pembangunan kasar berkemungkinan akan memberi manfaat kepada industri pembinaan secara umum dan mengurangkan kesan daripada pelaksanaan cukai barang dan perkhidmatan serta perbelanjaan modal yang lebih perlahan oleh perniagaan berikutan harga minyak yang rendah dan persekitaran ringgit lemah,” kata RHB Research.

Antara projek-projek infrastruktur yang dirancang atau sedang dilaksanakan termasuk projek keretapi laju Kuala Lumpur-Singapura (RM34.8 bilion), Aliran Transit Massa (MRT) Lembah Klang (MRT2) dan Transit Aliran Ringan 3 (LRT3) (masing-masing RM36 bilion dan RM9 bilion), landasan keretapi dari Gemas ke Johor Bharu sepanjang 197 kilometer, lebuh raya Pan Borneo di Sarawak dan rancangan pembinaan ribuan kilometer jalan baru di kawasan luar bandar.

“Bagaimanapun, sesetengah projek infrastruktur ini seperti projek MRT dan LRT, dilaksanakan melalui pembiayaan yang tidak dimasukkan dalam imbangan kira-kira,” jelas RHB Research.

Oleh itu, pada asasnya, Bajet 2017, akan berusaha untuk memenangi hati rakyat semasa keadaan yang tidak menentu berikutan faktor luaran, sebagaimana kata-kata Presiden Amerika Syarikat Abraham Lincoln, “semua manusia berhak mendapat peluang yang sama untuk meraih kekayaan “.

Bajet 2017 tentunya akan mencergaskan lagi negara dan ekonomi.

— BERNAMA

********************

The fact is that despite the economic growth steadily 4-4.5% the past seven years, the Federal Government deficit against GDP has been on the constant angle of reduction.

It simply translate that the Federal Government has been borrowing less to achieve the desired socio economic development programs sustainable to promote steady GDP growth.

This is far from Fourth Prime Minister Tun Dr. Mahathir’s suggestion of the nation is spiralling into a “failing economy”. The first half of 2016, the GDP stands at RM590 billion. The industrial production index is 125 (2010 as 100 base point). The employment index is almost 97% of workforce.

The surplus of the current account for the first half is RM6.9 billion.

When Prime Minister Najib took over the helm of the nation, within one year he introduced the Economic Transformation Plan (ETP). The Federal Government will no longer be over reliant on oil and gas as the single largest revenue contributor.

In hindsight, his fiscal strategy is very much demonstrated today.

*Updated 1800hrs

PRIME MINISTER OUTLINES A ‘COMMITMENT’ BUDGET‎
20th October 2016

Prime Minister Najib Tun Razak today outlined the major themes of the 2017 Budget that he will deliver to Malaysia’s parliament tomorrow.
Noting that some commentators have said this will be a General Election Budget, the Prime Minister instead stated:

*“This is a commitment Budget. Others may put short-term political gain first, but this government will not.* ‎

*“We commit to ensuring that the economic fundamentals of the nation remain resilient and strong – including policy on deficit targets‎, spurred economic activity, and the long-term health of the financial system.* ‎

*“We commit to being prudent and creative in optimising expenditure, to ensure delivery for the people.*‎

*“And we commit to a comprehensive, inclusive Budget that will fulfil our promises to the people.”*‎

Noting that during a year when advanced economies are expected to register growth of only 1.6 percent, Malaysia’s economy is on course to grow between 4 and 4.5 percent, the Prime Minister said: ‎

*“Despite the challenging global environment, the measures we introduced in last year’s Budget have helped ensure that the economy remains resilient and continues to grow. We have a plan, and it is working.*‎

*“We will continue to ensure economic indicators – such as inflation levels, growth rates and debt levels – remain strong and resilient, reflecting the core fundamentals of the economy.* ‎

*“Despite fiscal pressures, inflation has been kept at low levels, and the Malaysian people as a whole are better off today than they were a year ago. Indeed, we are now an upper middle income country.*‎

*“We continue to fulfil our promises to the people in a manner that is fair and inclusive. We are on the right trajectory, with the economy expected to improve still further in 2017 with growth of up to 5 percent.*‎

 ‎

*“At the same time, we recognise that there are challenges. We must put in place policies that address long-term structural changes, and will continue our efforts to improve the Bottom 40 as well as the Middle 40. Our focus is on both the people economy and the public economy. The overall happiness and welfare of the people is key objective.”*‎

 ‎

The Prime Minister said he would make further announcements on infrastructure, development, public transport and health, fiscal incentives for small and medium enterprises, and human capital and skills training. He said:‎

 ‎

*“In line with our commitment to put the people first; we intend to accelerate economic growth, empower human capital, drive education, increase connectivity, strengthen inclusive development and improve public service delivery.”*‎

In order to do so, the Prime Minister said that a major focus of the 2017 Budget will be on raising the disposable income of the rakyat; encouraging upscaling, reskilling and entrepreneurship training; mitigating the rising cost of living; providing more affordable houses, and funds for maintenance; substantial measures on education; and allocations for the provision of quality healthcare services.

The Prime Minister concluded by saying:
*“The safety and security of all Malaysians remains my biggest priority. We will intensify our efforts and allocate more resources to our fight against extremism and crime.”*‎

PRIME MINISTER’S OFFICE

MALAYSIA
*For more information:*
Please see http://www.treasury.gov.my
During the Budget speech:
Live stream on http://www.NajibRazak.comhttp://livestream.najibrazak.com/
Live stream on Najib Razak Facebook – https://www.facebook.com/najibrazak/
Live Tweets on Najib Razak Twitter (Bahasa Malaysia) – https://twitter.com/NajibRazak
Live Tweets on PMO Malaysia (English) – https://twitter.com/PMOMalaysia
After the Budget Speech 
Full text of speech immediately available (Bahasa Malaysia and English) – https://www.najibrazak.com/bm/blog/
Explanatory infographics – https://www.facebook.com/najibrazak/ or Najib Razak Email (subscribe via https://www.najibrazak.com/en/)
ENDS

Published in: on October 19, 2016 at 23:59  Comments (1)  

What “House Arrest”?

Fourth Prime Minister Tun Dr. Mahathir Mohamad’s credibility probably due to inconsistent faux pas which include seditious ones is the real challenge for him to be taken seriously after habitual lies to justify making his personal obsession a national political agenda.

FMT story:

Mahathir hands over Citizens’ Declaration to King

Nawar Firdaws | September 16, 2016
Former prime minister has audience lasting more than an hour with the Agong at the Istana Anak Bukit in Kedah.
mahathirtandatangan

PETALING JAYA: Former Prime Minister Dr Mahathir Mohamad has had an audience with the Yang di-Pertuan Agong, Tuanku Abdul Halim Mu’adzam Shah to hand over the Citizens’ Declaration, bearing 1.4 million signatures.
Former Umno member Khairuddin Abu Hassan told FMT that he accompanied Mahathir to Istana Anak Bukit in Alor Setar, Kedah, for the “historical” meeting yesterday.
“They (Mahathir and the King) met about 4.30pm and the discussion went on for about an hour 15 minutes.
“It was just between the two of them. So whatever was discussed inside, I will let Tun Mahathir reveal it,” Khairuddin said.

Mahathir’s special officer Sufi Yusuf also confirmed to FMT that the 91-year-old former prime minister went to the Istana bearing “a set of documents”.

*************

It is very inconsistent for His Majesty SPB YDP Agong to grant him an audience, if the latter “Is under house arrest”.

On 19 May 2016 in his quest to demonise Prime Minister Dato’ Sri Mohd. Najib Tun Razak, for the explicit purpose for Prime Minister Najib be ousted, Dr Mahathir made such pronouncement.

The Star story:

Friday, 27 May 2016 | MYT 1:44 PM

Dr Mahathir to be summoned over ‘house arrest’ claim

 

BY JUSTIN ZACK
KUALA LUMPUR: Tun Dr Mahathir Mohamad (pic) will be asked to give his statement to the police regarding his claim that the king and other rulers had been placed under house arrest.

When met at the Pusat Perubatan Universiti Kebangsaan Malaysia (PPUKM) during on Friday, Deputy Inspector-General of Police Datuk Seri Noor Rashid Ibrahim said that police are currently looking into the matter and would seek clarification from the former prime minister.

“We will take his (Tun Dr Mahathir) statement when the time is right,” he said.

On May 23, Malaysian Anti-Corruption Commission adviser Tunku Abdul Aziz Tunku Ibrahim lodged a report against Dr Mahathir regarding his claims, and said that allegations were “false and mischievous”.

Dr Mahathir had claimed that the Yang di-Pertuan Agong and other rulers had been placed under house arrest to prevent them from receiving the signatures of those who supported the Citizens’ Declaration.

**************

It is believed because of frustration arisen from all of his stunts since March 2015 to oust Prime Minister Najib, failed miserably.

Details of the discussion of His Majesty and Dr Mahathir has been blogged by Raja Petra, which highlighted the inability of Dr Mahathir to convince His Majesty of the claimed “1.4million signatures of the ‘Deklarasi Rakyat’ petition”.

If Raja Petra’s story is accurate, then it is utter shameful Dr. Mahathir even tried to hoodwink the King with his false support to a cause he concocted out of personal obsession.

He has been manipulating, lying, exaggerating and working with the Neo Con Jewish media, to see through that Prime Minister Najib is ousted. This is on top of Dr Mahathir’s call for foreign intervention to achieve his obsession.

Published in: on September 17, 2016 at 22:59  Comments (6)  

“Who did Mueller sleep with?”

Outgoing MAS CEO Christoph Mueller recent statement to German media about some of the staff “Were sleeping on jon” the justification why 6,000 persons thought to be the more productive ones of the now defunct national carrier previously known as Malaysia Airlines Berhad, irritated some of the affected professionals.

Malaysiakini story:

Outgoing CEO: Many MAS employees were doing nothing, some sleeping

136 comments Published 17 Jun 2016, 4:16 pm Updated 17 Jun 2016, 9:29 pm

Outgoing Malaysian Airlines Bhd (MAS) CEO Christoph Mueller said he had to cut 6,000 jobs because many of the 20,000 employees were “doing nothing”.

He said he was not impressed with the state that MAS was in when he first took over the Malaysian flag carrier.

“Despite all the announcements by the government, a turnaround wasn’t initiated by the time I became CEO.

“Many of the 20,000 employees who worked for the airline had nothing to do. In fact, when I walked through the hangars, people were sleeping. That’s why I had to radically cut 6,000 jobs,” Muller told German broadcaster Deutsche Welle (DW) on its web portal.

He said MAS was in dire straits before he took over because of poor personnel management and a bloated workforce.
He said that was why he laid off 6,000 workers and streamlined the firm’s operations.

Mueller said MAS also suffered from a bloated and overpriced supply chain, partly because the airline bought products from suppliers at prices 20 to 25 percent higher than the market value.

“Everything from pens to US$200-million aircraft were purchased at these rates. I am not saying that we were bad negotiators, and in any case corruption is punishable also in Malaysia,” he told DW, delicately explaining the matter.

Mueller also pointed out that MAS had about 20,000 suppliers and, as a result, the glut made it difficult for the airline to get a volume discount from anyone.

“Since I took over, we have managed to downsize the number to about 4,000 suppliers. But our goal is to cut it further to some 2,000. By doing this, we’ve reduced our procurement costs,” he said.

He noted that the airline has had a spate of bad luck in recent years – the disappearance of MH370 and shooting down of MH17 that gave it bad press – but expressed incredulity that the carrier could have been in the red at all.

“Malaysia Airlines has a proud heritage. It’s known as the epitome of Asian customer service. Given the country’s macroeconomic conditions, with economic growth averaging over five percent for 55 years now, it’s difficult not to make money with this airline,” he said.

He observed that the previous so-called turnaround plans announced for the airline were half-hearted at best.

However, Mueller is confident that with the management reforms he has put in place, MAS will be in the black again by 2018.

The German will officially step down in September this year – well ahead of his initial three-year contract, citing personal reasons.

*************

Mueller statements irked many, who are known to the rising star within Malaysian Airlines were made to leave since the exercise to terminate the 6,000 staffs came from the winding up of the original formerly listed company and the setting of an SPV.

“If Mueller said we were sleeping on the job, let me ask who is he sleeping with?”, remarked a veteran of Malaysia Airlines of 27 years service before he was summarily sacked because of Khazanah’s corporate manoeuvres.

He was believed to be referring to a rumour about a CEO of GLC who summarily resigned despite non completion of contract period after his wife found out about his extra-marital affair.

Mueller’s other justifications about Malaysia Airlines’ poor financial position is about acquiring equipments and goods from vendors, which is 15-20% higher than market value.

That is quite baffling because since almost 20 years ago, Malaysia Airlines is a plc listed on then Kuala Lumpur Stock Exchange (now Bursa Malaysia). Being a plc means there stringent processes of acquisition through the tender board, board pf directors and perhaps on some assets like aircrafts, involving Khazanah and Ministry of Finance.

These processes then had to under a series of audit process, either internally which the management eventually had to answer to the audit committee and a statutory external auditor.

Under Mueller, Malaysia Airlines Berhad shed a lot of its traditional routes which include Amsterdam and Paris and the new carrier is focusing of becoming a regional airline.

“If Mueller said we slept on the job and now we are no longer there, how is the company getting along? Is he making encouraging profits?”.

Now that Mueller is not even completing his contractual term, if it is true that what he said about the untimely termination of 6,000 staffs last September and 6,000 more expected by this September would eventually be the net loser to the German’s and Khazanah;s corporate games.

Published in: on June 18, 2016 at 16:00  Leave a Comment  

E-M(ahathir)ancipation

Proton would see a transformation of a new leaf there on, now founder and dictatorial remote-controller Fourth Prime Minister Tun Dr. Mahathir Mohamad is completely out of the picture after 33 years.

Malay Mail Online story:

Era of Dr M’s meddling in Proton over, says Najib

 

PUTRAJAYA, June 14 ― Proton Holdings Bhd is entering a new chapter where it will no longer face the interference of politicians such as Tun Dr Mahathir Mohamad, said Prime Minister Datuk Seri Najib Razak.

At the launch of the company’s new Perdana sedan today, Najib said such meddling in the decision-making process at Proton was why the carmaker needed billions in government assistance to remain viable.

“There has been too much political interference in Proton’s strategy, management ― including of personnel ― and business model. We saw the results of that early this year. A manufacturer which should be a source of national pride was facing a very difficult situation.

“Now, I am pleased to say, there have been significant changes at the top levels of Proton. Tun Mahathir’s era of political interference has come to an end,” Najib said.

MORE TO COME

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Prime Minister Dato’ Sri Mohd. Najib Tun Razak said this during the launch of Proton’s flagship model Perdana.

He also wanted Proton to be less reliant on the domestic market but also explore the opportunities as a car for the export market.

NST story:

Proton must become less reliant on Malaysian buyers, says Najib

 

BY AZURA ABAS – 14 JUNE 2016 @ 11:16 AM

KUALA LUMPUR: Proton must become less reliant on Malaysian buyers and build up a strong export programme. Prime Minister Datuk Seri Najib Razak, addressing the future of Proton, said the government’s assistance to the national carmaker was subject to conditions, such as the company identifying a strategic foreign partner.

The government in April had approved a RM1.5 billion loan to Proton Holdings to enable the company to pay for components that had been supplied. The loan, Najib stressed, was not a bailout as it came with strong conditions.

“We stepped in because the well-being of the people is always our first concern. We will never fail to support Malaysian workers and suppliers. We will always fight to ensure that no one is left behind.

” The assistance was conditional on Proton meeting stringent standards of professional management going forward; ensuring that the company has a model for long-term sustainability; and immediately identifying a strategic foreign partner.

“The loan was not a blank cheque. The company must prove itself, both in the domestic and the international markets. Ultimately, Proton must build up a strong export programme and become less reliant on Malaysian buyers.”

The prime minister was speaking at the launch of the all-new Proton Perdana today. The Perdana, now in its fourth generation, is developed via a strategic collaboration with Honda Japan Ltd. It is priced at RM113,888 for the 2.0 variant and RM138,888 for the 2.4 variant. It has already received around 900 pre-bookings. The company expects to sell around 3,000 units by year-end.

Read More : http://www.nst.com.my/news/2016/06/151789/proton-must-become-less-reliant-malaysian-buyers-says-najib

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Recently Malaysian Government agreed to provide Proton with conditional financial packages to the amount of RM1.5b, to alleviate its current and strategic issues.

Proton is required to revamp and restructure its management and use some of the provided funds to immediately address working capital issues such as long list of local vendors’ debt.

The company which started as the National Car Project is expected to find a strategic partner, to ensure the required investments for research and development, which is deemed necessary for products to remain relevant in a very competitive market.

Proton market share in Malaysia dropped from its peak of 76% in 1993 to the current 18%.

Proton also is expected to improve its marketing programs, to ensure the current products market acceptability.

Published in: on June 14, 2016 at 12:00  Comments (6)  

Playing with three sticks

The buzz being whispered about town going back and forth between market punters, gossipers and arm-chair analysts that the sudden departure of a CEO of a GLC with “Personal issues” as the excuse, is about a very delicate if not intimate ‘personal matter’.

The strange bit about the resignation that the man is only letting go of his executive function and responsibility but remained as a member of the Board of Directors (BoD).

The said married man is believed to have discovered for an intimate relationship, here in this country. It is also believed that the matter has been brought up to the attention of some of the BoD members, by his own spouse.

Across the board, this is the second surprise announcement made regarding key personalities of GLC within the Khazanah Group.

Earlier was CIMB Chairman Dato’ Seri Nazir Razak, who decided to take leave from CIMB (nothing said about Khazanah) after the recent Wall Street Journal revelation of his personal involvement of political funds channeled of the amount USD7 mil. The buzz-cock suddenly felt it was the ‘right thing to do’ (to go on leave pending investigations), for a brotherly favour he did at the same time his eldest brother Prime Minister Dato’ Sri Mohd. Najib Tun Razak was handling USD690 mil of donations, believed for political purposes.

The said CEO who had summarily resigned only completed eight and half month stewardship of a New Co. which was formed as part of the turn-around and rationalisation plan, is said to have signed a contract for three years of service.

Whether issue of morality is part of the consideration for him to remain as BoD, to serve for the remaining duration of contract cannot be ascertained.

However, at the rate of the gossip it is bound that the matter would eventually be raised by some of the 6,000 (mostly able and very productive loyalists) made redundant of the Khazanah plan to revive the GLC, in the rough tones of “They put a fucker in charge, after our lives were fucked!”.

After all, most of the 6,000 made jobless are people with families, of Malay-Muslim conservative background where infidelity is a major morality matter.

Published in: on April 20, 2016 at 17:00  Comments (3)